PPAP Automotive Limited · NSE:PPAP
PPAP Automotive — Q3 FY16 Earnings Presentation
47 slides from PPAP Automotive's earnings presentation, Aug 13, 2016
Slide 1: PPAP Automotive Limited
PPAP Automotive Limited (Formerly Precision Pipes & Profiles Company Limited) Taking Challenges, Together
Slide 2: Agenda and Disclaimer
AGENDA S.NO. ITEM 1 Company Overview 2 Financial Performance (Q3 & Nine Months FY16 ) 3 Financial Performance (LAST 3 YEARS) DISCLAIMER • PPAP AUTOMOTIVE LIMITED may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filin
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Brief Profile
BRIEF PROFILE PPAP Automotive Limited (PPAP) is a leading manufacturer of Automotive Sealing Systems, Interior and Exterior Injection parts in India State of the art manufacturing facilities located at Noida (UP), Greater Noida (UP), Chennai (Tamil Nadu) and Pathredi (Rajasthan). All the plants are
Slide 5: General Information
GENERAL INFORMATION S.NO DESCRIPTION REMARKS SHARE HOLDING 3.2 1 COMPANY ESTABLISHED 1978 START OF AUTOMOTIVE 2 1985 24.19 BUSINESS 8.56 63.15 LISTED ON STOCK EXCHANGE 3 2008 (BSE/NSE) 0.9 4 SHARE CAPITAL 140 MILLION INR • TS 16949 Promoters Financial Institutions 5 CERTIFICATIONS • ISO 14001 Bodies
Slide 6: Management Profile
MANAGEMENT PROFILE Ajay Kumar Jain - Chairman & Managing Director • Commerce graduate from the Shri Ram College of Commerce, University of Delhi • Has been associated with the company since inception • Experience of over 40 years in the Polymer processing industry • Experience of over 30 years in th
Slide 7: Mission, Vision & Values
MISSION, VISION & VALUES MISSION TO BE A DOMINANT SUPPLIER OF BODY SEALING, INTERIOR & EXTERIOR PARTS VISION TO BE OUR CUSTOMERS' NO. 1 SUPPLIER VALUES YEARS • TRUSTWORTHINESS EXPERIENCE • MUTUAL RESPECT • CREATIVITY • COOPERATION • EXCELLENCE
Slide 8: Journey
JOURNEY 1978 1985 1989 1996 2002 •Company •Start of the •Technological tie up •Established Plant - I •Certification of TS Incorporated Automotive Business with Tokoi Kogyo (Noida) 16949 and ISO •Added Maruti Suzuki Co., Japan •Added Honda Cars as 140001 as customer customer 2007 2006 2005 2004 2003
Slide 9: Automotive Sealing Systems / Injection Molded Products
AUTOMOTIVE SEALING SYSTEMS INJECTION MOLDED PRODUCTS
Slide 10: Product - Milestones
PRODUCT - MILESTONES 1978 COMPANY 1989 : START OF TECHNOLOGY PARTNERSHIP 2007 : START OF TECHNOLOGY PARTNERSHIP 2012 : START OF JV ESTABLISHED WITH TOKAI KOGYO WITH NISSEN CHEMITECH COMPANY - PTI 2008 : LISTED ON STOCK EXCHANGE << JV COMPANY >> GLASS RUN CHANNEL,BACK DOOR OPENING & TRIM DOOR OPENING
Slide 11: Sealing Systems
SEALING SYSTEMS ROOF MOULDING TRIM DOOR OPENING BACK DOOR / TRUNK SEAL MOULDING WINDSHEILD PVC TPO EPDM DOOR OPENING SEAL AIR SPOILER GLASS RUN CHANNEL OUTER BELT INNER BELT SLIDE RAIL PRODUCTS MADE BY PTI (JV) BLACK/BRIGHT
Slide 12: Injection Molding Products
INJECTION MOLDING PRODUCTS FR-PILLAR CTR-PILLAR RR -PILLAR REAR TRAY PARTITION UNDER HOOD PRODUCTS IN CABIN PRODUCTS LINING RR PANEL SIDE PROTECTORS SPLASH GUARD DOOR LINING FENDER INNER TRUNK LINING
Slide 13: Technology Partners
TECHNOLOGY PARTNERS AUTOMOTIVE SEALING SYSTEM INJECTION MOLDED PRODUCTS TOKAI KOGYO CO. LTD, JAPAN NISSEN CHEMITEC CORPORATION, JAPAN ESTABLISHED : 1947 ESTABLISHED : 1951 GLOBAL PRESENCE : GLOBAL PRESENCE : USA, THAILAND, INDONESIA, CHINA, USA, THAILAND, INDONESIA, SINGAPORE MEXICO,VIETNAM RELATION
Slide 14: Core Strengths
CORE STRENGTHS Leadership Position Strong Customer Base • India’s leading manufacturer of Automotive Sealing Systems • Leading OEM manufacturers in Indian Market are customers Access to global technology State-of-the-art manufacturing facilities • Focus on Kaizen towards Technology and Operations •
Slide 15: Facilities Overview
FACILITIES OVERVIEW
Slide 16: Manufacturing Facilities
MANUFACTURING FACILITIES CERTIFICATIONS HUMAN RESOURCE TS 16949 ISO 14001 TEAM STRENGTH : 1517 I OHSAS 18001 Pplanm E E PLANT IV PLANT I PLANT II PATHREDI, 2014 NOIDA,1996 NOIDA,2003 INDIRECT 21% E PLASTIC EXTRUSION R I NO OF TEAM MEMBERS I INJECTION DESIGN & DEVELOPMENT 40 R RUBBER EXTRUSION TOOL M
Slide 17: Design and Development
DESIGN AND DEVELOPMENT • PRODUCT DESIGN • TOOL DESIGN • CHECKING FIXTURE DESIGN • DESIGN VALIDATION • SPECIAL PURPOSE MACHINES DESIGN AND MANUFACTURING
Slide 18: Extrusion Infrastructure
EXTRUSION INFRASTRUCTURE PVC / TPO MATERIAL EPDM & TPV MATERIAL 13 EXTRUSION LINES 1 KNEADER MIXING PLANT (2ND MIXING) FLOCKING LINES 1 EPDM LINE ASSEMBLY LINES 1 TPV LINE JV COMPANY – PPAP TOKAI INDIA RUBBER PRIVATE LIMITED
Slide 19: Injection Molding Infrastructure
INJECTION MOLDING INFRASTRUCTURE RANGE : • 60 TONS – 2500 TONS MAKE : • TOSHIBA • NISSEI • JSW • FANUC • TOYO • MITSUBISHI 32 MACHINES INCLUDING 8 GAS ASSISTED
Slide 20: Tool & Machine Manufacturing
TOOL & MACHINE MANUFACTURING IN HOUSE TOOL ROOM CNC MACHINES WIRE CUT (SODICK) EDM CNC LATHE CNC MILLING OUTSOURCING OF TOOLINGS FROM – LOCAL CHINA TAIWAN
Slide 21: Testing and Validation
TESTING AND VALIDATION TEST MACHIINES • Universal Testing Machine • Impact Strength Testing Machine ( Izod/ Charpy ) • Hardness Tester • Specific Gravity • MFI Testing Machine • Muffle Furnace for Ash Content • Viscosity Meter • Heat / Cold Conditioning Chambers • Salt Spray Tester • Profile Project
Slide 22: Customers Profile
CUSTOMERS PROFILE
Slide 23: Models
MODELS — = Aa otipetitet 0 a > en Se A 2 cay
Slide 24: Customers
CUSTOMERS INDIA EUROPE > 20 YRS > 15 YRS > 01 YRS MEXICO > 10 YRS THAILAND > 01 YRS > 04 YRS JAPAN > 03 YRS > 01 YRS > 04 YRS > 03 YRS > 02 YRS > 9 YRS > 02 YRS > 02 YRS > 03 YRS
Slide 25: Awards
AWARDS
Slide 26: Bie.
Bie. eo He =I = = === | S| | = | e 9 pe Cia 7 ee = " =]
Slide 27: Customer Appreciation
CUSTOMER APPRECIATION TOYOTA MOTOR CORPORATION HONDA CARS INDIA LIMITED TOYOTA KIRLOSKAR MOTOR INDIA PVT LIMITED MARUTI SUZUKI INDIA LIMITED
Slide 28: Financial Performance - Quarter FY
FINANCIAL PERFORMANCE << QUARTER 3 FY 16 >>
Slide 29: Income
INCOME VARIANCE VARIANCE Year on Year Qtr on Qtr
Slide 30: Expenses
EXPENSES -11% -3% +10% +15% -6% +6% -19% -12% +14% +12% VARIANCE VARIANCE Year on Year Qtr on Qtr
Slide 31: Profitability Ratios
PROFITABILITY RATIOS +52% -18% +40% -28% +49% -23% +51% -8% +40% -19% +48% -13% VARIANCE VARIANCE Year on Year Qtr on Qtr
Slide 32: Per Share Earnings
PER SHARE EARNINGS +49% -22% +83 +8% VARIANCE VARIANCE Year on Year Qtr on Qtr
Slide 33: Summary - Key Ratios
SUMMARY – KEY RATIOS 90 20.00% 80 16.81% 18.00% 18.18% 16.00% 70 14.00% 60 11.12% 11.28% 12.00% Rs. crore 50 9.11% 10.00% 40 71.46 80.67 71.78 8.00% 6.53% 30 6.00% 20 5.64% 4.90% 4.00% 10 3.30% 2.00% 0 0.00% Q3FY15 Q2FY16 Q3FY16 Income from Operations EBITDA Margin EBIT Margin PAT Margin
Slide 34: Financial Performance - Nine Months FY
FINANCIAL PERFORMANCE << NINE MONTHS FY 16 >>
Slide 35: Income
INCOME eee Income from Operation +2% (Rs. Crore) ov v ) i) 5 e NINE MONTHS FY16 NINE MONTHS FY15 NINE MONTHS FY16 NINE MONTHS FY15 220.73 223.13 225.69 m Income 226.35 VARIANCE Year on Year
Slide 36: Expenses
EXPENSES -7% +9% -11% +29% +2% VARIANCE Year on Year
Slide 37: Profitability Ratios
PROFITABILITY RATIOS VALUE (IN RS. CRORE) MARGIN (IN %) 20% 45 +33% +51% +48% +36% +55% +51% 18% 40 16% 35 14% 30 12% 25 10% 20 8% 6% 15 4% 10 2% 5 0% EBITDA EBIT PAT 0 EBITDA EBIT PAT NINE MONTHS FY16 17.28% 9.95% 4.89% NINE MONTHS FY16 39.01 22.46 11.04 NINE MONTHS FY15 13.07% 6.58% 3.30% NINE MON
Slide 38: Per Share Earnings
PER SHARE EARNINGS +53% VARIANCE Year on Year
Slide 39: Summary - Key Ratios
SUMMARY - KEY RATIOS OMFY15 OMFY16 l@miincome from Operations -@-EBITDAMargin <@-EBIT Margin =i-PAT Margin
Slide 40: Financial Performance - Previous Years
FINANCIAL PERFORMANCE << PREVIOUS 3 YEARS >>
Slide 41: Income
INCOME TOTAL INCOME (INR CRS.) INCOME FROM OPERATION (INR CRS.) 350.00 350.00 CAGR : CAGR : 21.21 % 322.64 21.59 % 318.50 300.00 300.00 250.00 250.00 255.25 246.76 219.59 215.43 200.00 200.00 150.00 150.00 100.00 100.00 50.00 50.00 - - FY13 FY14 FY15 FY13 FY14 FY15
Slide 42: Profitability Ratios
PROFITABILITY RATIOS +56% 13% +45% +78% +39% +8% +782% +911% +519% +10% -15% +609% VARIANCE Year on Year
Slide 43: Return Ratios
RETURN RATIOS IN % 9% +61% 8% +15% 7% +110% 6% 5% +157% +759% 4% +244% 3% 2% 1% 0% ROCE ROI FY13 0.83% 0.84% FY14 7.13% 2.89% FY15 8.16% 6.06% VARIANCE Year on Year
Slide 44: Per Share Earnings
PER SHARE EARNINGS +5% +10% +609% +3% VARIANCE Year on Year
Slide 45: Summary - Key Ratios
SUMMARY - KEY RATIOS 350 o £ r) = oO a oc FY13 FY14 FY15 mm income from Operations -™-EBITDA Margins —=-EBIT Margins === PAT Margins* “ * Before extraordinaryitem
Slide 46: Strategy Going Forward
STRATEGY GOING FORWARD 1 2 Improve Operational Efficiency Optmization of Asset Utilization • International Benchmarking • Impossible for • Our Mantra - "Every Paisa Counts" • Improve margin realization • Improve OEE (Overall Equipment Efficiency) Competition to driven by cost optimization & operatin
Slide 47: Contact Details
Mr. Manish Dhariwal (Chief Financial Officer) PPAP Automotive Limited Ph: +91-120-2462552 / 53 Email: manish.dhariwal@ppapco.com Mr. Anand Lalla / Mr. Parin Narichania Concept Investor Relations Mo: +91 7506051178 / 9930025733 Email: anand@conceptir.com / parin@conceptir.com Website : www.ppapco.in